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Legionfarm - Pitch - Deck (Upd April 2019)
Legionfarm - Pitch - Deck (Upd April 2019)
Legionfarm - Pitch - Deck (Upd April 2019)
Legionfarm
The UBER for Paid Services in Online Games
We help gamers with little time master complex game content by hiring professional players to assist with
accelerated levelling and in-game digital asset accumulation
PITCH
That are
lack of time or a good team for passing the most interesting game content and getting the best in-game
unsatisfied rewards
with
Legionfarm is a platform for paid gaming assistance services connecting ordinary players with professional
gamers and gaming teams
That
players to achieve the desired levels, get items and in-game achievements that can not be bought but can
allows be obtained through the efforts within the game. Due to lack of time, ordinary players can not achieve the
desired results on their own, but with Legionfarm, it becomes possible
In contrast to the top competitors (Playerauctions, G2G, Funpay, etc.) Legionfarm is UBER, while traditional in-game
trading marketplaces are like Ebay with private taxi drivers. Legionfarm uses predictive game data
analytics and chatbots that provide 2-3 times faster service with high-quality processes. Legionfarm has
way more scalable business model
BRIEF OVERVIEW
Business model Market
Sector: Gaming - Virtual economy. Domestic market of multiplayer online The number of gamers worldwide is 2,2 bn
games. The volume of the global gaming market is $137,9 bn
Clients: Gamers of MMO games, buying gaming assistance services. The target market of in-game trading is $3,3 bn
Business model: Reverse marketplace.
Monetisation model: Commission for the completed services. Current game disciplines
Pricing: Ranges from $15 to $3000 per service, LTV = $550+.
Geography
And 7 more
Clients: 80% USA, 20% Europe, UAE, Australia.
Agents: 70% CIS, 20% Europe, 10% USA.
In 3-5 years: Current + Asia and CIS.
Team
32 people with expertise in the gaming market for more than 10 years:
Revenue dynamics, $k Alexey Belyankin - CEO&founder - 11 years in the gaming industry, started
as eSports player, founded Mmoguard, Powerboosting.com, Rbgboost.net
projects, worked in Blazingboost.com
600
Kirill Chuvakov - CPO&founder, ex-CPO GOSU.AI, ex-Product manager in
505
453 mail.ru
450
388 • R&D - 9
318 • Customer service - 11
300 • marketing - 7
239 213
168 • back office - 3
150
66 79
14 Investment requirement
0
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 $700 000 (R&D - 60%, Marketing - 40%)
THE COMPANY OPERATES IN A GROWING MARKET
Gaming market dynamics, $bn Gaming services market in MMO games
200 Ordinary gamers - 55%
180.1
165.9 Spend less than 2-3 hours a day gaming.
151.9 They dream of the highest rewards, but
150 never achieve them.
121.7
137.9
1.3
100
bn Amateurs - 40%
registered Spend between 4 to 8 hours a day gaming.
MMO gamers Often team up with other amateurs and
50
Smartphone ordinary players and have difficulty getting
Tablet
Console
into the major league teams.
Browser games
PC
0
2017 2018 2019 2020 2021 Professionals - 5%
Top rated players who have achieved the
most honourable gaming awards.
By the end of 2018, there were 2.2 billion active gamers in the world,
out of which 47% (1 billion) made in-game purchases.
To date, more than 20 million players use the services of paid assistance
The volume of the global gaming market reached $137.9 billion (in and p2p assets trading platforms in MMO and competitive online games
comparison, 2017 was estimated at $121.7 billion). annually.
The most active gaming audience are representatives of millennials,
that provide steady long term growth potential for this market.
3,2
$ bn
480 30
40
$ mln $ mln
mln gamers
The number of gamers involved into virtual Share of paid services of boosting, In 2021, Legionfarm plans to reach $30
economy worldwide reaches on average 1,5-2% of powerleveling and coaching usually takes on million in annual turnover and take a 6-7%
the total number of gamers. With the projected average 15% of the total virtual economy share of this market.
market growth, this number will gradually increase market.
to 3-4% until 2021.
Average ARPPU in in-game trading market across
all the game disciplines is $80 per year.
The size of the Legionfarm’s target market
(SAM) will reach $3.3 billion.
THE GAMING MARKET TRENDS
Segment 26-40 y.o. men playing 1-2 hours a day due to real-life employment.
They have money, but they do not have time and just want to enjoy the game.
Problem 1. Lack of time and desire to avoid routine. Developing a game character and getting in-game achievements and items
are associated with large time investments for passing boring levels (monotonously repeated actions are required).
2. Inability to join a strong team because a gamer spends not enough time on the game. They have to play with weak
teams that will never pass the top levels of the game.
Current
No solution: Fearing months of game grinding, the gamer abandons the game
Long and painful solution: Levelling and learning by yourself for 3-6 months or more
solution Quick solution: Buying paid services as an alternative
The main reason of
The absence of high-quality services on the market; the order fulfillment usually begins in 2-3 days; services are often
dissatisfaction not finished on time; the order status during its processing period is not clear.
Legionfarm allows players to get the desired results (experience, skills, achievements, items) 2-3 times faster than competitors without spending time
on the selection of a suitable team and provides automatic updates on progress and quick 24/7 communication.
BUSINESS MODEL: HOW IT WORKS
LEGIONFARM LEGIONFARM
Customer service Agent recruitment In-game service
The first sale is made via chatbots and Coordination of service delivery
sales department. Half of sales are The algorithmic search of
automated. time, quality control, performance an agent for each
guarantee individual order based on
the game profile data,
After the first purchase, Legionfarm analyzes client’s
game profile and offers unique recommendations on
Transfer of the revenue share to schedule synchronisation
repeated purchases that will allow improvements in game the agent for a successfully
progress. completed order
The company works as an intermediary between the client and the agent and is not responsible for any legal risks connected with this
type of service for games owners and publishers.
BUSINESS MODEL: HOW IT WORKS
Repeat the
40%
purchase
7% Remain for 2+
years (plateau)
Adwords (45%)
- Choosing services yourself
28% of customers
of the order is 2-3
- The client enters their times faster than
Organic (45%) gaming profile and 7%
pay w/o questions,
32% 150$ average on the Collecting the
automatically receives a 16% converted by market.
feedback from the
personalized offer. chatbot and 56% Client and performer client and the game
Other (10%) The average
speak with sales communicate analyst.
check for the first
managers through our bots Preparing a new offer
purchase
DEVELOPMENT DYNAMICS: REVENUE
2 560
2600 6000
2 108 505 210
5000
453 445
1 717
1 486 388 049 4000
1 303
1 152 318 720
3000
259 599
670 239 276 235 093
213 152
396 188 833 2000
168 315
152 284
103
114 339 111 008
79 385 83 364 1000
65 707
35 482 42 868
13 538
7 311
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
100% 40%
CLIENTS USERS
Guilds in games
In-game trading market giants, such as Services in 8 out of 10 cases require prior approval of the deal details and
Playerauctions, focus on currency and communication during while order is active (av. 5 days). Private boosters don’t
Playerauctions.com,
item trading. Such sales in 95% of work systematically. Service execution with Legionfarm is 2-3 times faster than
Funpay, G2G, ItemMania
cases do not require communication comparable marketplaces due to formalized and automated processes.
etc.
with the user and are delivered Legionfarm is UBER, while traditional marketplaces are like Ebay with private
automatically. taxi drivers.
#3 Platform automatisation
Refinement of our platform for managing and maintaining orders will reduce operational costs and, by automating parts of the processes, increase the
speed of communication with clients. By 2020, this will lead to an increase in LTV by 40% and the platform throughput to $1M per month.
In the coming year, the company will open a gaming center for its gaming teams with a capacity of 100+ players for testing product hypotheses and
developing the software, which will run on agents’ PCs worldwide.
PLANS AND KEY HYPOTHESES
4 829 4 904
5000 4 744 800
4 577
4 408
4 150
2 659 2 757
2 486
2500 400
1 854 1 928
1 742
1 464
1 139
1250 200
786 875
135 131 171 220 261 278 289 373 399 413 477 498 513 526 622 661 687 712 724 736
0 0
01.2019 02.2019 03.2019 04.2019 05.2019 06.2019 07.2019 08.2019 09.2019 10.2019 11.2019 12.2019 01.2020 02.2020 03.2020 04.2020 05.2020 06.2020 07.2020 08.2020
Purchases Revenue, $k
Entering the markets of new games, adding channels of promotion and automating the platform will result in
the revenue increase up to $ 700,000 per month by mid-2020
DEVELOPMENT PLANS
16
EXIT > $100 mln
Round A
100000 clients
Turnover: $30M per year
50 games
12
30000 clients
Turnover: $10M per year
Seed+
50 games
10000 clients
8 Turnover: $4M per year
10 games
4000 clients
Turnover: $2M per year
2 games
4 50 clients
Turnover: $4,000 per month.
1 game
Q3' 2017
Q4 2016 Q4' 2017
2017 Q1' 2018
2018 Q2-4'
20192018 2019
2020 2020
2021 2021
2022
TEAM
Alexander Gornyi
Advisor
Former Chief Strategy Officer in Mail.ru Group. Deputy CEO in CityMobil - Taxi aggregator.
Headed ICQ project in 2010. He maintains a popular blog #стартапдня (startup of the day) with
author reviews of startups and their business models.
Marketing (40%)
Investments required Experiments and Scaling
- Testing the new channels: Twitch,
YouTube, thematic resources, referral
system
- Scaling the current channels: Google
AdWords, Facebook, thematic forums in
current and new tested games
Alexey Belyankin
Founder & CEO
ceo@legionfarm.com
+7 913 763 88 81